Stock futures dip slightly after Dow turns negative for 2023: Live updates

The Japanese yen strengthened against the greenback after briefly touching 150 overnight.

In response to reporter questions, Japan’s Finance Minister Shunichi Suzuki said he will not comment on whether or not there was any intervention to prop up the yen. He added that Japan will take steps against any dramatic moves in the currency “without ruling out any options.”

The yen is currently trading at 149.18 against the U.S. dollar.

The last time Tokyo intervened to buy yen was in September and November 2022 when the currency sank to a 32-year low.

— Lee Ying Shan

Both bonds and equities sold off on Tuesday, and the 60/40 portfolio felt the pain keenly.

The iShares Core Growth Allocation ETF (AOR), which reflects a portfolio allocation of 60% in equities and 40% in fixed income, dropped 1.14% on Tuesday.

The portfolio suffered a total return of -15.6% in 2022 as both stocks and bonds declined sharply.

A difficult day in the market – or a rough year like 2022 – doesn’t necessarily negate the long-term prospects of the 60/40 model.

Rather than provide blockbuster returns, the portfolio is intended to give investors diversification and smooth the price volatility you would otherwise see in stocks. However, during a day in which both equities and fixed income suffer, the 60/40 portfolio will also take a tumble.  

— Darla Mercado

Cal-Maine Foods fell nearly 12% in extended trading after posting an earnings report that underwhelmed analysts.

The egg distributor said it earned 2 cents per share in the fiscal first quarter, well below the consensus estimate of 33 cents per share from analysts polled by FactSet. Cal-Maine also missed Wall Street’s expectations for revenue in the quarter, posting $459.3 million while the average analyst had forecasted $479.5 million.

Management cited “dynamic” market conditions, noting egg prices have normalized as supply has started to recover.

— Alex Harring

The Dow Jones Transportation Average ended the day below the 200-day moving average on Tuesday, a move that may portend a downtrend from here.

It was the first time the Dow Transports closed below that threshold since June 1. The 20-stock Dow Transports fell 0.78% as stocks sold off broadly and bond yields surged on Tuesday.

In all, 13 of the stocks comprising the index are below their 200-day moving average, including Union Pacific, CSX, Norfolk Southern and Southwest Airlines.

The 200-day moving average is an important indicator for market technicians, as it details long-term trends for a given asset or index. In this case, a close below the 200-day could suggest further declines ahead.

— Darla Mercado, Gina Francolla

The chance of a quarter-point increase to 5.50%-5.75%in the Fed’s benchmark overnight lending rate at the central bank’s next policy meeting on Nov. 1 rose to 30.9% Tuesday, up from 16.4% last week, according to the CME FedWatch tool.

The probability that rates will rise from the current 5.25-5.50% — derived from 30-day fed funds futures prices — rose after stronger-than-expected jobs opening numbers for August were reported by the Bureau of Labor Statistics.

— Scott Schnipper

Stock futures traded near flat Tuesday night.

Dow futures slipped just around 0.1% shortly after 6 p.m. ET, while S&P 500 and Nasdaq 100 futures were both marginally below flat.

— Alex Harring